Despite continuous stockpiling of the new cotton crop, Pakistani mills have placed import orders for roughly 300,000 bales, raising concerns about the crop’s future in the nation. So far, orders for 300,000 bales of cotton have been placed.
According to merchants, as cotton consumption rises, imports would certainly rise as well due to a supply deficit in the nation.
Experts expressed alarm over the arrival of the new crop in Pakistan.
Cotton prices in the local market remained steady following spinner purchases, according to a dealer. Sindh prices were steady, while Punjab prices fell by Rs400 per maund.
The arrival of seed cotton in Sindh and Punjab has increased, with some estimating that 100,000 bales will be ready by the end of June. Cotton output has been decreasing year after year, and cotton prices in the country have increased by Rs1,500 to Rs2,000 per maund. The government is incentivizing other crops while ignoring cotton. In the government budget, no specific steps were taken to enhance the crop.
During the week, a team from the Pakistan Cotton and Ginners Association (PCGA) met with numerous ministers in Islamabad, but no definite resolution in favour of cotton production was obtained. According to PCGA sources, if their legitimate requests are not satisfied, they would be forced to close ginning plants and oil mills. Buyers have complained to the PCGA that they have been harmed by some form of adulteration in cotton.
The Karachi Cotton Association’s Spot Pricing Committee maintained the spot rate at Rs12,600/maund. Lint traded for 86 to 87 cents per pound on the New York Cotton Market. With 130,400 bales, Pakistan remained the biggest importer of US lint. Ismail Rahu, the Sindh Minister for Agriculture, has asked the federal government to remove the sales tax placed on ginning industries.